FIRST TIME HOME-BUYER

Purchasing a home, as opposed to paying rent, may be a wise investment. Programs for first-time home buyers are available to provide financial assistance to qualified buyers. Many questions arise during the process of purchasing your first home, and the Mortgages Unlimited is here to guide you through.

Why should I buy instead of rent?

When you pay rent instead of a mortgage, your money disappears. When you pay a mortgage instead of rent, your money works for you. You can deduct the cost of your mortgage loan interest from your federal income taxes, and sometimes your state taxes as well. You can also deduct the property taxes that you pay as a homeowner. A HUGE added bonus is when you go to sell your home, it might be worth more than when you purchased it.

Pre-qualification:

When pre-qualifying for a home loan, a lender is evaluating and verifying all the information provided on your application such as:
• Income
• Assets
• Credit history

Based on the evaluation of the above mentioned, this will determine the amount of credit you can qualify for.

How much of a down payment will I need?

It all depends on how much you want to pay for a home and how much money you have available. If you do not have much money available, there are government programs that have been created to help first-time homebuyers. We offer a variety of loans that can normally accommodate each borrower’s needs. Some of these programs have less stringent qualification guidelines, while others require little or no down payment. In many cases, the money needed for the closing can be incorporated into the loan amount, reducing the amount of money a borrower needs to have on hand to purchase a home.

Why are down payments so low on some properties?

These are offers that lenders make, but they are not ideal for everyone. A borrower must qualify for the exact loan offered. Remember that in many cases, the lower the down payment, the higher the monthly payment, and the higher the probability that the borrower needs to purchase mortgage insurance. If you are interested in a loan with a low down payment, ask us about getting one. We offer many types of loans with low down payments and less stringent qualification guidelines.

Items needed when applying for a home loan:

• Two most recent paycheck stubs for each applicant
• Last two years of W2s for each applicant
• Last two years of tax returns for each applicant - all pages
• Copy of drivers license of each applicant
• Two months of most recent bank statements - all pages